©2013 Foley & Lardner LLP Attorney Advertising Prior results do not guarantee a similar outcome Models used are not clients but may be representative of clients 321 N. Clark Street, Suite 2800, Chicago, IL Silencing of the (Conservative) Lambs Cleta Mitchell, Esq. December 9, 2013

©2013 Foley & Lardner LLP Huffington Post, May 10, 2013 IRS Apologizes For Inappropriately Targeting Con servative Political Groups In 2012 Election “IRS agents singled out dozens of organizations for additional reviews because they included the words "tea party" or "patriot" in their exemption applications, said Lois Lerner, who heads the IRS division that oversees tax-exempt groups. In some cases, groups were asked for lists of donors, which violates IRS policy in most cases, she said.” LLP Golden Rules: Enter the IRS…

©2013 Foley & Lardner LLP Wall Street Journal, May 19, 2013 Kim Strassel: The IRS Scandal Started at the Top “The bureaucrats at the Internal Revenue Service did exactly what the president said was the right and honorable thing to do.” LLP Golden Rules: Enter the IRS

©2013 Foley & Lardner LLP Daily Caller, December 5, 2013 Obama dismisses IRS targeting of conservatives: ‘They’ve got a list, and suddenly everybody’s outraged’ LLP Golden Rules: IRS Takes Aim

©2013 Foley & Lardner LLP TIME Magazine, Nov 26, 2013 Obama Targets Dark-Money Groups Proposed regulations would declare "candidate- related political activity" as not promoting social welfare LLP Golden Rules: Enter the IRS

©2013 Foley & Lardner LLP On Nov. 29, 2013 – IRS issued proposes rules that will treat as candidate-related political activities the following:  Voter registration  Candidate forums and debates  Voter guides  Voting records of incumbents  Public statements by officers and leaders of c4s that reference incumbents and candidates LLP Golden Rules: IRS Takes Aim at 501c4s

©2013 Foley & Lardner LLP  Communications include radio, tv, written, newspaper, internet, phones and oral if can reach 500 people  If voting records or other statements are posted on website – and remain on website within “blackout” period, converted to a candidate- related political expenditure  Applies to volunteer activities sponsored by organization LLP Golden Rules: IRS Takes Aim at 501c4s

©2013 Foley & Lardner LLP  “Candidates” include all public offices, executive, legislative and judicial – partisan and nonpartisan, and ‘officers in a political organization’  Contributions to a c4 that engages in any ‘CRPA’ will be treated as 100% political  ‘express advocacy’ uses broader definition, includes ‘reject’ as a ‘magic word’ and adopts a subjective test (“communication is perceived as having electoral meaning…”) LLP Golden Rules: IRS Takes Aim at 501c4s

©2013 Foley & Lardner LLP  Proposed rules do not include: » labor unions » Trade associations » 501c3 organizations Only 501c4 groups. Wall Street Journal study documented $4.4 billion in political expenditures by labor unions LLP Golden Rules: IRS Takes Aim at 501c4s

©2013 Foley & Lardner LLP  Organize and comment by Feb 27, 2013  Comment on these proposed rules: » Discriminatory by only applying to 501c4 organizations » violate First Amendment rights of citizens and organizations » Are complicated, complex and will burden small citizens groups » Political and lobbying activities ARE for the social welfare and the public good LLP Golden Rules: Do NOT Let the IRS Silence You!

©2013 Foley & Lardner LLP  Give examples of things that a c4 should be able to do without government interference, taxation and reporting: » Candidate forums and debates » Nonpartisan Voter registration » Get-out-the-vote » Issue guides » Voting records of incumbents » Grassroots lobbying 365 days per year! » Volunteer programs should NOT be subject to taxation LLP Golden Rules: Do NOT Let the IRS Silence You!

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